The Victor Company sells two products.The following information is provided: $$\begin{array} { | l | r| r | r r | }
\hline & { \text { Product A } } & { \text { Product B } } \
\hline \text { Unit selling price } & \$ 100 & \$ 150 \
\hline \text { Unit variable cost } & \$ 30 & \$ 70 \
\hline \begin{array} { l }
\text { Number of units produced and } \
\text { sold }
\end{array} & 20,000 & 60,000 \
\hline
\end{array}$$ What is the weighted average contribution margin per unit?
A) $77.50
B) $80.00
C) $75.00
D) $72.50

Question

The Victor Company sells two products.The following information is provided: $$\begin{array} { | l | r| r | r r | } 
\hline & { \text { Product A } } & { \text { Product B } } \
\hline \text { Unit selling price } & \$  100 & \$ 150 \
\hline \text { Unit variable cost } & \$  30 & \$  70 \
\hline \begin{array} { l } 
\text { Number of units produced and } \
\text { sold }
\end{array} &  20,000 &  60,000 \
\hline
\end{array}$$ What is the weighted average contribution margin per unit?
A) $77.50
B) $80.00
C) $75.00
D) $72.50

Quizplus · Accepted Answer

Weighted average contribution margin per unit = [(Contribution margin per unit of Product A * Units of Product A) + (Contribution margin per unit of Product B * Units of Product B)] / (Total units of Product A + Total units of Product B)= [($100 - $30) * 20,000 + ($150 - $70) * 60,000] / (20,000 + 60,000)= [$70 * 20,000 + $80 * 60,000] / 80,000= [$1,400,000 + $4,800,000] / 80,000= $6,200,000 / 80,000= $77.50

The Victor Company Sells Two Products What Is the Weighted Average Contribution Margin Per Unit? A)

The Victor Company Sells Two Products What Is the Weighted Average Contribution Margin Per Unit?
A)